10
February 2020 edition Produced by the CPUC’s News & Outreach Office | [email protected] continued on page 2 CPUC President Discusses Safety Issues at Assembly Committee Hearing At the annual California Public Utilities Commission (CPUC) hearing in January before the California Assembly Utilities and Energy Committee, CPUC President Marybel Batjer highlighted many of the safety-related initiatives she and her fellow Commissioners have advanced since she was sworn in as President last August. “I was sworn in on August 16th and in my short time with the CPUC, I have seen the devastating impacts of the bankruptcy of our largest investor-owned utility, cata- strophic wildfires, Public Safety Power Shut-offs, and telecommunications out- ages, just to name a few,” President Batjer told the committee. “Such issues have pri- oritized my work. I am essentially an out- sider to the utilities world. I do not bring decades of experience in energy policy or utility executive management to my role. Rather, I lean on common sense, common effective decision-making and organiza- tional management principles, and a clear understanding of who I serve. e people of this great state.” Committee members, many of whom have worked with President Batjer in her past role as Secretary of the California Govern- ment Operations Agency, responded fa- vorably to her testimony. Committee Vice Chair Jim Patterson (R-Fresno) called her a “sterling appointment.” Chair Chris Holden (D - Pasadena) and others used the hearing to express various concerns with what Chair Holden referred to as “tumultuous times in the energy sec- tor,” particularly for Pacific Gas and Elec- Inside: CPUC Expands 3 Self-Generation Program Profile: Anthony Colbert 4 California Prepares to Shiſt 5 Away From Natural Gas Docket: Filings at the CPUC 6 March 2020 Produced by the CPUC News & Outreach Office | [email protected] tric Company (PG&E) and other electric investor-owned utilities. e situation, Chair Holden added, has “shattered pub- lic confidence in those utilities and in the institutions which regulate them.” As President Batjer told the committee, “I welcome your engagement and collabora- tion because it will require a broad and thorough effort to make sure we meet the needs and expectations of Californians as we head into the next wildfire season, sea- sons ahead of that, as well as other chal- lenges we know are ahead of us.” She began her testimony by running through a list of actions the CPUC has taken in response to Assembly Bill 1054, the major wildfire and utility safety mea- sure sponsored by Chair Holden in 2019. Since that bill was signed by Gov. Gavin Newsom last July, the CPUC has: • Established the Wildfire Safety Divi- sion, with Director Caroline omas Jacobs setting up the office to imple- ment the aggressive goals set out in Chair Holden’s bill. President Batjer said the CPUC has also begun coor- dination with the Natural Resources Agency on planning for the transfer of “…it will require a broad and thorough effort to make sure we meet the needs and expectations of Californians as we head into the next wildfire season” CPUC President Marybel Batjer

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Page 1: CPUC President Discusses Safety Issues at Assembly ...€¦ · Shut-offs (PSPS) as a way to mitigate fire risk during extreme weather conditions. The first plans were submitted to

February 2020 editionProduced by the CPUC’s News & Outreach Office | [email protected]

continued on page 2

CPUC President Discusses Safety Issues at Assembly Committee HearingAt the annual California Public Utilities Commission (CPUC) hearing in January before the California Assembly Utilities and Energy Committee, CPUC President Marybel Batjer highlighted many of the safety-related initiatives she and her fellow Commissioners have advanced since she was sworn in as President last August.

“I was sworn in on August 16th and in my short time with the CPUC, I have seen the devastating impacts of the bankruptcy of our largest investor-owned utility, cata-strophic wildfires, Public Safety Power Shut-offs, and telecommunications out-ages, just to name a few,” President Batjer told the committee. “Such issues have pri-oritized my work. I am essentially an out-sider to the utilities world. I do not bring decades of experience in energy policy or utility executive management to my role. Rather, I lean on common sense, common effective decision-making and organiza-tional management principles, and a clear understanding of who I serve. The people of this great state.”

Committee members, many of whom have worked with President Batjer in her past role as Secretary of the California Govern-ment Operations Agency, responded fa-vorably to her testimony. Committee Vice Chair Jim Patterson (R-Fresno) called her a “sterling appointment.”

Chair Chris Holden (D - Pasadena) and others used the hearing to express various concerns with what Chair Holden referred to as “tumultuous times in the energy sec-tor,” particularly for Pacific Gas and Elec-

Inside:CPUC Expands 3 Self-Generation Program

Profile: Anthony Colbert 4

California Prepares to Shift 5 Away From Natural Gas

Docket: Filings at the CPUC 6

March 2020Produced by the CPUC News & Outreach Office | [email protected]

tric Company (PG&E) and other electric investor-owned utilities. The situation, Chair Holden added, has “shattered pub-lic confidence in those utilities and in the institutions which regulate them.”

As President Batjer told the committee, “I welcome your engagement and collabora-tion because it will require a broad and thorough effort to make sure we meet the needs and expectations of Californians as we head into the next wildfire season, sea-sons ahead of that, as well as other chal-lenges we know are ahead of us.”

She began her testimony by running through a list of actions the CPUC has taken in response to Assembly Bill 1054, the major wildfire and utility safety mea-sure sponsored by Chair Holden in 2019. Since that bill was signed by Gov. Gavin Newsom last July, the CPUC has:

• Established the Wildfire Safety Divi-sion, with Director Caroline Thomas Jacobs setting up the office to imple-ment the aggressive goals set out in Chair Holden’s bill. President Batjer said the CPUC has also begun coor-dination with the Natural Resources Agency on planning for the transfer of

“…it will require a broad and thorough effort to make sure we meet the needs and expectations of Californians as we head into the next wildfire season”

CPUC President Marybel Batjer

Page 2: CPUC President Discusses Safety Issues at Assembly ...€¦ · Shut-offs (PSPS) as a way to mitigate fire risk during extreme weather conditions. The first plans were submitted to

this Division to the Office of Energy Infrastructure Safety on July 1, 2021.

• Issued a Ruling last December that set performance metrics for utility Wildfire Mitigation Plans; and,

• Established the Wildfire Fund that can help pay wildfire-related insurance claims.

As President Batjer explained, the Wildfire Mitigation Plans submitted by utilities to the CPUC for review are becoming a key framework in assessing the prepared-ness and effectiveness of their work in pre-venting utility-caused wildfires, as well as the effectiveness of each plan’s elements, including the use of Public Safety Power Shut-offs (PSPS) as a way to mitigate fire risk during extreme weather conditions.

The first plans were submitted to the CPUC in 2019. Based on lessons learned from those plans and the 2019 wildfire season, President Batjer said the CPUC’s new Wildfire Safety Division and the Safe-ty Enforcement Division are implement-ing changes to the Wildfire Mitigation Plan process, such as revising the Wildfire Mitigation Plan guidelines. “This repre-sents a major milestone in the evolution of the WMP process,” she testified, “as these guidelines are intended to aid in the evalu-ation of utilities’ wildfire mitigation efforts and ensure consistency with the CPUC’s long-term wildfire goals.

President Batjer has been highly critical of how the state’s investor-owned utilities implemented widespread PSPS events in 2019 and she testified that the new guidelines and the Wildfire Mitigation Plans are designed to ensure that utili-ties “articulate and ultimately implement how they will reduce the scale and scope of future PSPS events.”

For example, she explained, the new guide-lines require utilities to report the results of PSPS Stress Tests, which include estimates on the frequency, scope, and duration of a PSPS event this coming fire season. The utilities must demonstrate how wildfire mitigation investments—such as system hardening, improved vegetation manage-ment, and grid re-design— will reduce the scope and duration of future PSPS events.

“Using the new Wildfire Mitigation Plan Maturity Model, we will be assessing the

plans across 52 specific capabilities and evaluate the IOUs’ performance and am-bition towards significantly reducing the number and impact of future PSPS events and reduce the likelihood of utility igni-tions and impact of ignitions,” President Batjer said.

Among other things, she told legislators, the investor-owned utilities, particularly PG&E, need to:

• Improve their engagement with local government.

• Provide better maps for PSPS events.• Coordinate more closely with local

government on prioritization of PSPS mitigation activities, such as prioritiz-ing locations for sectionalizing, devel-oping microgrids to build resiliency for critical services, and pre-identifying lo-cations for comprehensive Community Resource Centers.

• Improve their timing and breadth of customer notifications. They need to reach all of the correct customers with-in the timeline specified in the current PSPS guidelines; and,

• They need to prove they used PSPS as a “measure of last resort”.

President Batjer also touched on steps the CPUC is taking to make sure telecommu-nications providers are resilient enough to be functional during power shut-offs and other emergencies.

“The CPUC,” she said, “is considering re-quiring telecommunication companies to provide back-up battery power and gen-erators at cellular sites, hardening com-

munications infrastructure, and requiring communications carriers to participate in planning exercises with the electric IOUs in advance of the wildfire season. We are also requiring that the IOUs provide bet-ter notice to communications companies so that they can minimize the impact of PSPS events on their networks.”

A week after she testified, the CPUC, through an Administrative Law Judge Ruling, issued for public comment a se-ries of proposed additional guidelines re-lated to PSPS events that utilities would be required to follow prior to the 2020 wildfire season.

If approved by the CPUC’s Commission-ers, the guidelines would include:

• Restoring power as soon as possible and no longer than 24 hours after condi-tions necessitating the power shut-off had concluded.

• More robust regional collaboration.• Conducting exercises with public

agencies.• Ensuring communications resiliency.• Meeting specific needs of vulnerable

populations.• Strengthening access to information

provided to the public online.• Improved public explanation regard-

ing PSPS events and the decisions sur-rounding them.

• Better notification of communications providers.

• Improved addressing of transportation impacts.

CPUC PRESIDENT continued from front page

2

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By Commissioner Clifford Rechtschaffen

The CPUC’s Self-Generation Incentive Program, or SGIP, is one of the nation’s longest standing customer-side generation pro-grams, dating back to the state’s 2001 electricity crisis. Originally designed to provide incentives for distributed generation resources such as wind and solar, the program has evolved considerably over the years. Now, as we continue to wrestle with climate change, wildfires, and Public Safety Power Shut-offs (PSPS), the CPUC has modified SGIP in a number of ways so it can help provide back-up power and promote resiliency in communities most at risk from wildfires and shut offs.

Most recently, on January 16, as part of continuing efforts to strengthen community wildfire resiliency in high fire threat areas of the state, the CPUC authorized funding of more than $1 bil-lion for SGIP in time for the next fire season.

The Decision we approved directs investor-owned utilities to collect the maximum amount of funds from ratepayers allowed under existing law, and—pursuant to the direction of Senate Bill 700 (Weiner, 2018)—extends the life of the program five ad-ditional years.

The Decision authorizes collection and expenditure of $830 mil-lion between now and 2024. When added to existing unspent program funds, more than $1.2 billion is now available for proj-ects between now and 2025.

So, how will these funds be spent?

The Decision focuses the program on energy storage projects that serve customers with medical needs and impacted communities during PSPS events. The program targets the state’s highest fire threat districts, where there is “extreme” and “elevated” risk of fire, and disadvantaged and low income customers, medically vulner-able households, critical services facilities, and low income solar program customers.

The Decision also extends eligibility to customers affected by at least two prior PSPS events and calls for setting aside 63 percent of the budget to fund “equity/resiliency projects.” These funds will cover the full cost of energy systems to benefit low income and disadvantaged communities and medically vulnerable cus-tomers who are most at risk during electricity shut-offs. Without this assistance, energy storage would be out of reach for most of these customers. The new equity/resiliency budget will fund an estimated 46,400 new residential storage systems or 3,225 non-residential systems (based on historic average system size).

As recent PSPS events have reminded us, the communities and customers these incentives will help experience severe hardships and public safety risks during wildfires and PSPS events.

In addition to the money set aside for equity/resiliency projects, our latest Decision also directs 12 percent of the authorized funds for renewable generation projects; 10 percent for large scale stor-age projects; 7 percent for residential projects; 5 percent for heat pump water heaters; and 3 percent for residential equity projects.

We also adopted a “resiliency adder” with higher incentives for renewable generation and large-scale storage projects by customers with critical resiliency needs.

The Decision also expands the list of customers who are eligible for the equity/resiliency incentives to include customers relying on wells with electric pumps, small grocery stores and markets, food banks, and independent living centers.

Heat pump water heaters (which run on electricity) are also a form of behind-the-meter energy storage that is within the scope of the SGIP. The new heat pump water heater incentives will play an important role in electrification efforts that seek to reduce green-house gas emissions by replacing natural gas water heaters with water heaters using electricity that is increasingly renewable. In 2018, regulated utilities delivered between 38-43 percent renew-able electricity and will reach 60 percent by 2030. A very large number of water heaters are replaced every year, so it is important to start transforming that market as soon as possible.

Because we are unsure about how all the different budget categories will play out and which ones will experience the most demand, we’ve included flexibility that will allow refinements to the budget allocations in a timely manner, if necessary. The CPUC will also monitor demand closely and make other adjustments if needed.

This strikes a balance between signaling to the industry that a stable funding source is available that warrants the investment of time and resources to plan and develop projects, while also pro-viding flexibility to ensure that the funds are all used to benefit the people who need them the most and in ways consistent with state policies and goals.

The Decision also expands the list of customers who are eligible for the equity/resiliency incentives to include customers relying on wells with electric pumps, small grocery stores and markets, food banks, and independent living centers.

CPUC Expands Self-Generation Program in Advance of Wildfire Season

3

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Assistant Chief Administrative Law Judge (ALJ) W. Anthony Colbert clearly likes his role at the CPUC.

“Other employees like advocating,” he acknowledges, “but I like deciding.”

Anthony describes himself as something of a sculptor who can see the final product to be carved out of the many opinions, facts, and processes.

“I like to take in information and follow issues,” he adds. “I can hopefully see the ultimate answer and the path to how to get to that answer, how to build the record on facts, how to hear both sides and not get confused.”

He’s been honing those skills for a few decades.

After graduating from the University of Virginia School of Law and serving low-income clients in a large public-interest law firm, Anthony signed on as Corporations Counsel at the California De-partment of Corporations (now called Department of Business Oversight), reviewing the issuance of securities and franchises in California. In 2000, he began 10 years there as a Hearing Officer, presiding over a variety of high-profile hearings including Google’s acquisition of YouTube, the dissolution of the Pacific Stock Exchange, as well as hearings approving acquisitions by Apple, Cisco, and Yahoo.

Anthony has been with the CPUC’s ALJ Division since 2010, first as an ALJ and currently as Assistant Chief ALJ overseeing adjudi-catory and transportation proceedings, Public Purpose Programs, the Alternative Dispute Resolution mediation program, and the Docket Office, which is the administrative and clerical arm of the ALJ Division. He also supervises ALJs, reviews and approves Pro-posed Decisions and Rulings, and is a certified mediator.

He has particularly enjoyed traveling the state working on the Cal-ifornia Advanced Services Fund, which helps to make broadband available to more Californians.

“I like working on Public Purpose Programs,” Anthony says, “be-cause the results are so tangible. I’m not as good at the theoretical. I like advocating for those with less of a voice.”

As much as he likes his job, however, Anthony is quick to point out that life-work balance is important to him. He says he models him-self after his father in his efforts to be a good husband and parent.

“There was never a time,” he says, “my father did not put us first.” Anthony takes seriously the need to be conscientious, respectful, and focused on the task at hand.

Anthony also credits his wife and two children with grounding him, giving him perspective in life and work.

He shares those values as a mentor, formerly at Balboa High School Law Academy and now at the DeAnza High School Law Academy in Richmond.

He acknowledges his own undergraduate degrees in Modern Eu-ropean History at UC Santa Barbara and his year abroad at Uni-

versity of St. Andrews in Scotland might seem unusual given his current work.

“History is not just memorizing dates and places,” he explains. “It is learning why things happened as they did. That is excellent training for regulatory work.”

Born and raised in Los Angeles, Anthony likes to travel more than just back in time. Especially to track meets to watch the sprinters.

Anthony himself ran the more sensational 100- and 200-meter sprints in high school and switched to the 400 meter in college. While still a sprint of power and pace, the 400 requires a consider-ably higher tolerance for pain due to lactic acid build-up over the course of the lap.

When the conversation turns to track and field, Anthony noticeably animates. His low soothing tones spring into the sports vernacular of the great sprint races he has witnessed. His favorite might be the 1984 Olympics where he got to work in the Olympic Village.

“Give me a free weekend to myself,” he says, “and I am off to a major track meet.”

GET TO KNOW US: Meet CPUC ALJ Anthony Colbert

“I like working on Public Purpose Programs, because the results are so tangible…I like advocating for those with less of a voice.”

W. Anthony Colbert Assistant Chief Administrative Law Judge

4

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By Commissioner Liane M. Randolph

California’s energy system is undergoing a period of profound change. 

Our state has committed to the goals of 100 percent clean electricity, a doubling of energy efficiency, widespread transporta-tion electrification, and a carbon-neutral economy by 2045.

Our electricity system has rapidly exceeded the renewable goals, and we are looking at an energy mix that is, at certain times of some days, well over 60 percent carbon-free.

But in the meantime, we need to achieve significant reductions in the use of fossil fuels in transportation and other sectors. 

While you are contemplating making your next car purchase an electric vehicle and replacing your old gas water heater with an efficient heat pump water heater, state policymakers are considering how to man-age the long-term transition away from fossil fuels. 

As a key part of those considerations, we need to anticipate and plan for significant changes in California’s natural gas distri-bution system. In January, the CPUC launched a process to do just that.

The last time the CPUC began a long-term planning process for gas system re-liability was in 2004, and the effort was largely successful. The CPUC took actions to enhance reliability and affordability. 

But much has changed in the gas indus-try in California since 2004, as we’ve seen with a series of pipeline and storage safety-related incidents, as well as challenging operational issues and constraints.

On the safety side, we experienced the San Bruno explosion and inferno in 2010 when a Pacific Gas and Electric Company natural gas pipeline ruptured and explod-ed, killing eight people, injuring 58, and destroying or damaging 108 homes.

To ensure that such a disaster does not happen again, the CPUC established a new safety process requiring all gas trans-mission pipeline operators in the state to file plans explaining how they will replace or pressure-test all pipelines that had not

been tested or for which reliable records were not available.

In October 2015, a well blowout at South-ern California Gas Company’s (SoCalGas) Aliso Canyon Natural Gas Storage Facility near Los Angeles caused an environmen-tal disaster resulting in the leak of 97,100 tons of methane. The incident forced sev-eral thousand families to be relocated tem-porarily and led to severe restrictions on Aliso Canyon storage. 

At the request of Gov. Gavin Newsom and the Legislature, we’re now looking at ways to transition away from the Aliso Canyon facility as quickly as possible, once we’ve identified reliable and cost-effective ways to manage the gas system without the large storage capacity at the field.

Moreover, in 2017, SoCalGas experi-enced a rupture on a major pipeline, Line 235-2, in the desert east of Los Angeles, and other problems on Line 4000. Since both pipelines connect to critical inter-state points to receive gas, their outages limited the amount of gas supply on the SoCalGas system. 

During unseasonably cold temperatures in the winter of 2018, the utility was forced

California Prepares to Shift Away From Natural Gas, While Keeping Power Reliable and Affordable

While you are contemplating making your next car purchase an electric vehicle and replacing your old gas water heater with an efficient heat pump water heater, state policymakers are considering how to manage the long-term transition away from fossil fuels.

continued on page 7

to order mandatory gas supply cuts for some of its large customers.

These supply constraints led to price spikes for natural gas customers in 2017 and 2018 that resulted in extra costs for electric ratepayers as well. 

Given that California’s energy portfolio still includes gas-fired generators, the in-creased gas prices caused electric ratepayers to pay more than $1 billion in additional costs during 2017 and 2018.  

The need to maintain reliability, protect electric customers from increased costs, and the paramount concern for safety means that it is time to take a step back and consider these challenges holistically. 

At the CPUC’s Voting Meeting in San Francisco on Jan. 16, we opened a new Rulemaking proceeding with the goal of providing a forum where we can consider the challenge of how to ensure the safety and reliability of California’s natural gas infrastructure. 

And, to do so as we craft a long-term plan-ning strategy to manage our transition away from natural gas-fueled technologies to meet California’s decarbonization goals.

5

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THE DOCKET: Proceedings Filed at the CPUC January 2020PROCEEDING NUMBER | FILED DATE | FILER

A1912015 | 19-DEC.-2019 | HFA OF CALIFORNIA LLCApplication of HFA Of California LLC for a Certificate of Convenience and Necessity to Provide Limited Facilities-Based and Resold Com-petitive Local Exchange and Interexchange Service.http://docs.cpuc.ca.gov/SearchRes.aspx?DocFormat=All&DocID=323689329

A1912013 | 27-DEC.-2019 | CALIFONIA WATER SERVICE COMPANYApplication of California Water Service Company (U60W), a Califor-nia corporation, for authorization to: (1) issue new Debt Securities in an aggregate principal amount up to $700 million, in addition to previously-authorized amounts; (2) issue new Equity Securities in an aggregate principal amount up to $700 million, in addition to previously-authorized amounts; (3) include certain features in the Debt or Equity Securities or to enter into certain derivative transac-tions related to underlying debt in order to improve the terms and conditions of the new securities and with the goal of lowering the cost of money for the benefit of ratepayers; and (4) take all other appropriate actions.http://docs.cpuc.ca.gov/SearchRes.aspx?DocFormat=All&DocID=323764334

A1912016 | 27-DEC.-2019 | PACIFICORPIn the Matter of the Application of PacifiCorp (U901E) for Authority to Establish a Memorandum Account for Costs Associated with Retire-ment and Decommissioning of Cholla Power Plant Unit 4.http://docs.cpuc.ca.gov/SearchRes.aspx?DocFormat=All&DocID=324290708

A1912014 | 30-DEC.-2019 | ABIANO LIMOUSINE, LLCIn the matter of the Application Of ABIANO LIMOUSINE, LLC, for pas-senger stage authority under Section 1031, et. seq., of the California Public Utilities Code, to transport tourists and residents, on an on-call, inter/intra county fare basis, between points in the counties of San Francisco, Santa Clara, Alameda, Contra Costa, Marin County, Napa, Sonoma, Sacramento, on the other hand; and to establish a Zone of Rate Freedom (ZORF) under Section 454.2, et. Seq., of the PU Code.http://docs.cpuc.ca.gov/SearchRes.aspx?DocFormat=All&DocID=323687987

A1811005 | 6-JAN.-2020 | ALJ/AYOADE/CPUCProposed Decision Resolving the Application of Southern California Gas Company to Establish a Demand Response Program.http://docs.cpuc.ca.gov/SearchRes.aspx?DocFormat=All&DocID=323708979

A2001002 | 06-JAN.-2020 | CHARTER COMMUNICATIONS, INC.Application for Rehearing of Resolution T-17674.http://docs.cpuc.ca.gov/SearchRes.aspx?DocFormat=All&DocID=323689336

A2001001 | 07-JAN.-2020 | GOLDEN STATE WATER COMPANY, ON BEHALF OF ITS BEAR VALLEY ELECTRIC SERVICE DIVISIONApplication of Golden State Water Company on Behalf of its Bear Valley Electric Service Division (U913E) for Approval of Memoran-dum Account to Record and Track Incremental Costs of Implement-ing California Consumer Privacy Act of 2018.http://docs.cpuc.ca.gov/SearchRes.aspx?DocFormat=All&DocID=323759043

C1812004 | 7-JAN.-2020 | ALJ/RIZZO/CPUCPresiding Officer’s Decision dismissing Complaint of Southern Cali-fornia Public Power Authority vs. Southern California Gas Company. http://docs.cpuc.ca.gov/SearchRes.aspx?DocFormat=All&DocID=323764303

A2001005 | 9-JAN.-2020 | LOGAN PARENT, LLC Joint Application by Logan Parent, LLC, and LogMeIn, Inc. for Ap-proval Pursuant to Public Utilities Code Section 854 of the Transfer of Control of GetGo Communications LLC (U7241C), Grasshopper Group, LLC (U7197C), and Jive Communications, Inc. (U7360C).http://docs.cpuc.ca.gov/SearchRes.aspx?DocFormat=All&DocID=324786016

R1502020 | 9-JAN.-2020 | ALJ/ATAMTURK-LAKHANPAL/CPUCProposed Decision Granting Petition for Modification of Decision 15-09-004 filed by FuelCell Energy, Inc. and Toyota Motor North America to clarify that directed biogas is eligible under the Bioenergy Market Adjusting Tariff.http://docs.cpuc.ca.gov/SearchRes.aspx?DocFormat=All&DocID=324367352

A2001003 | 10-JAN.-2020 | ANYTIME AIRPORT SHUTTLE, LLCApplication of Anytime Airport Shuttle, LLC to operate as both a Scheduled and On-Call Passenger Stage Corporation between points in Chico California and the Sacramento International Airport, the Oakland International Airport and the San Francisco Interna-tional Airport; and to establish a Zone of Rate Freedom. Hard copy filed.

A2001004 | 13-JAN.-2020 | VINEYARD INFRASTRUCTURE -LOS OLIVOS, LLC Application of Vineyard Infrastructure Los Olivos, LLC, doing busi-ness as Santa Ynez Trolley, for authority to operate as a scheduled Passenger Stage Corporation between the cities of Los Olivos, Santa Ynez, Los Alamos, Ballard, Buellton and Solvang; and to establish a Zone of Rate Freedom (ZORF).http://docs.cpuc.ca.gov/SearchRes.aspx?DocFormat=All&DocID=324375646

6

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This is no small undertaking. 

It is highly complex, with many mov-ing parts and issues to weigh and think through. But it is absolutely essential that we do so, and I look forward to hearing the thoughts and ideas of affected people as we address these challenges.

It’s important to manage this transition so we minimize “stranded” costs borne by ratepayers. Stranded costs refers to utility infrastructure that must still be paid for but that would become obsolete as the transition unfolds. 

We must also avoid making gas service un-affordable or uneconomic for those who continue to use gas for essential energy services and ensure that customers who move off gas have access to essential energy services at prices that are affordable. 

Most importantly, gas pipelines need to be maintained safely. They must be operated consistent with state and federal standards. Maintaining those standards will require investments of labor and equipment at a time when ideally the amount of gas used will go down. 

Ensuring safety at the same time the system transitions towards less reliance on gas will

be a high hurdle for the state to manage. But we Californians are up to the challenge.

We plan to conduct this proceeding in three phases:

Track 1A will examine reliability stan-dards for the gas transmission systems to determine, among other things, whether design changes are necessary to account for a warming climate, and the service capacity of current and future gas system infrastructure.

Track 1B will examine proposals for miti-gating the negative impact that operational issues with gas transmission systems have on wholesale and local gas market prices, and gas system and electric grid reliability. 

And Track 2 will determine the regulatory solutions and planning strategy the CPUC should implement to ensure that—as the demand for natural gas declines—gas utilities maintain safe and reliable gas sys-tems at just and reasonable rates, and with minimal or no stranded costs.

In managing this transition, we also need to be cognizant of the impacts on those working in the natural gas industry. A re-cent report by Gridworks, an energy ad-vocacy organization in Oakland, noted a

gas distribution work force in California of more than 10,000 employees.

As we move away from natural gas, natural gas, these workers are understandably con-cerned about their livelihoods. We need to be sensitive to their needs as well.

Any undertaking of this magnitude must be collaborative. In addition to working with the public, CPUC staff from our En-ergy, Safety and Legal Divisions, as well as other knowledgeable CPUC experts, we are—as always—in close communication and coordination with the California En-ergy Commission. We are, in fact, estab-lishing a working group with the Energy Commission so that we can explore these issues together.

We face many big decisions as this pro-ceeding moves forward. These decisions will have tremendous economic, social, and environmental impacts. 

I’m confident that working inclusively the public, and our partners at the Energy Commission and elsewhere, we can make the right decisions that keep our energy system safe, affordable, and reliable.

Note: This article first appeared in CalMatters on Feb. 25, 2020.

C2001008 | 15-JAN.-2020 | ZUMA BEACH FM EMERGENCY AND COMMUNITY BROADCASTERS, INC. Zuma Beach FM Emergency and Community Broadcasters Inc. d/b/a 99.1 KBUU-FM, Complainant, vs. Southern California Edison Com-pany (U338E), Defendant. [Allegation: Decision 19-05-042 violation].Hard Copy Filed

R2001007 | 16-JAN.-2020 | CPUCOrder Instituting Rulemaking to Establish Policies, Processes, and Rules to Ensure Safe and Reliable Gas Systems in California and per-form Long-Term Gas System Planning. http://docs.cpuc.ca.gov/SearchRes.aspx?docformat=ALL&docid=322522999

A2001009 | 16-JAN.-2020 | LEISURE SIGHTSEEING SHUTTLEApplication of Leisure Sightseeing Shuttle, a California Corporation, for a Certificate of Public Convenience and Necessity to operate as an on call Passenger Stage Corporation between Points in the Coun-ties of Alameda, Santa Clara, San Mateo, Contra Costa, Marin and the City and County of San Francisco and the San Francisco International Airport, Oakland International Airport and the Norman Y. Mineta San Jose International Airport; and to establish a Zone of Rate Freedom. Hard Copy Filed.

A1504013 | 17-JAN-2020 | ALJ/YACKNIN/CPUCDecision Granting a Certificate of Public Convenience and Necessity for the Riverside Transmission Reliability Project. http://docs.cpuc.ca.gov/SearchRes.aspx?DocFormat=All&DocID=324944676

A1807024 | 17-JAN-2020 | ALJ/HYMES/CPUCDecision Addressing San Diego Gas & Electric Company and South-ern California Gas Company Triennial Cost Allocation Proceeding Applicationhttp://docs.cpuc.ca.gov/SearchRes.aspx?DocFormat=All&DocID=324865002

I1812007 | 17-JAN-2020 | ALJ/ALLEN/CPUCPresiding Officer’s Decision approving with modifications a proposed settlement between Pacific Gas & Electric Company (PG&E), the Commission’s Safety and Enforcement Division and the Coalition of California Utility Employees (CUE) relating to problems with PG&E’s “Locate and Mark” program for identifying the location of underground gas and electric facilities. Any party to this adjudica-tory proceeding may file and serve an Appeal of the Presiding Offi-cer’s Decision within 30 days of the date of issuance of this decision. In addition, any Commissioner may request review of the Presiding

CALIFORNIA PREPARES continued from page 5

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Officer’s Decision by filing and serving a Request for Review within 30 days of the date of issuance. Any party may file and serve a Re-sponse to an Appeal or Request for Review no later than 15 days af-ter the date the Appeal or Request for Review was filed. In cases of multiple Appeals or Requests for Review, the Response may be to all such filings and may be filed 15 days after the last such Appeal or Re-quest for Review was filed. Replies to Responses are not permitted. http://docs.cpuc.ca.gov/SearchRes.aspx?DocFormat=All&DocID=324944677

A2001010 | 21-JAN.-2020 | CHARTER COMMUNICATIONS, INC.Application for Rehearing of Resolution T-17668.http://docs.cpuc.ca.gov/SearchRes.aspx?DocFormat=All&DocID=324884560

A2001011 | 21-JAN.-2020 | SIMWOOD, INC.In the Matter of the Application of Simwood, Inc. for a Certificate of Public Convenience and Necessity to Provide Resold and Limited Facilities-Based Local Exchange and Interexchange Telecommuni-cations Services Within California.http://docs.cpuc.ca.gov/SearchRes.aspx?DocFormat=All&DocID=325636776

A1204019 | 23-JAN-20 | ALJ/HAGA/CPUCProposed Decision granting compensation to Planning and Conser-vation League Foundation for substantial contribution to Decisions 18-09-017 and 16-09-021. http://docs.cpuc.ca.gov/SearchRes.aspx?DocFormat=All&DocID=325544861

R1407002 A1607015 | 23-JAN-20 | ALJ/KAO/CPUCDecision Denying Petition for Modification of Decision 16-04-020 and Decision 18-02-008 with respect to the bill credit estimation methodology for small solar plus storage systems. http://docs.cpuc.ca.gov/SearchRes.aspx?DocFormat=All&DocID=325526229

R1103013 | 23-JAN-20 | CMMR/SHIROMA/CPUCDecision Extending Authorization to Replace Federal Support for California-Only Participants to the California Universal Telephone Service Program. http://docs.cpuc.ca.gov/SearchRes.aspx?DocFormat=All&DocID=325526228

A1204019 | 24-JAN-20 | ALJ/HAGA/CPUC Decision Granting Compensation to Landwatch Monterey County for Substantial Contribution to Decisions (D.)18-09-017 and D.16-09-021. http://docs.cpuc.ca.gov/SearchRes.aspx?DocFormat=All&DocID=325544871

R1807003 | 24-JAN-20 | ALJ/ATAMTURK/LAKHANPAL/CPUC Decision Granting Intervenor Compensation to L. Jan Reid for Sub-stantial Contribution to D.19-02-007. http://docs.cpuc.ca.gov/SearchRes.aspx?DocFormat=All&DocID=325544870

A1906001 | 24-JAN-20 | ALJ/WILDGRUBE/CPUC Decision Adopting Pacific Gas and Electric Company’s 2020 Energy Resource Recovery Account Forecast and Generation Non-Bypass-able Charges Forecast and Greenhouse Gas Forecast Revenue Re-turn and Reconciliation. http://docs.cpuc.ca.gov/SearchRes.aspx?DocFormat=All&DocID=325636695

A2001012 | 24-JAN.-2020 | CALIFORNIA WATER SERVICE COMPANYIn the Matter of Application of California Water Service Company (U60W) for a Certificate of Public Convenience and Necessity to Con-struct a Public Utility Water System Near Friant in Madera County and to Establish Rates For Service.http://docs.cpuc.ca.gov/SearchRes.aspx?DocFormat=All&DocID=326172059

A1911024 | 25-NOV.-2019 (IN NEED OF REASSIGNMENT, WEEK OF 20-JAN.-2020) | COMBINED PUBLIC COMMUNICATIONS, LLCApplication of Combined Public Communications, LLC for Registra-tion as an interexchange Carrier Telephone Corporation Pursuant to the Provisions of Public Utilities Code Section 1013.http://docs.cpuc.ca.gov/SearchRes.aspx?DocFormat=All&DocID=320829855

A1701012, A1701018, A1701019 | 17-JAN.-2017 (REOPENED, WEEK OF 20-JAN.-2020) | PACIFIC GAS AND ELECTRIC COMPANYRehearing of Decision 19-12-040: Application of Pacific Gas and Elec-tric Company (U39E) for Approval of Demand Response Programs, Pilots and Budgets for Program Years 2018-2022. [Pursuant to ALJs’ Ruling of 2/16/2017, A.17-01-012, A.17-01-018, and A.17-01-019 are consolidated.]http://docs.cpuc.ca.gov/SearchRes.aspx?DocFormat=All&DocID=324941943

R0506040 | 30-JUNE-2005 (REOPENED, WEEK OF 20-JAN.-2020) | CPUC -PG&E, EDISON, SDG&E ET AL. Petition for Modification of Decision (D.) 06-06-066 as Amended by D. 07-05-032, D.06-12-030, and D.08-04-023: Order Instituting Rule-making to implement Senate Bill No. 1488 (2004 Cal. Stats., Ch. 690 (Sept. 22, 2004)) relating to confidentiality of information.http://docs.cpuc.ca.gov/SearchRes.aspx?DocFormat=All&DocID=324865027

A1204019 | 23-APRIL-2012 (REOPENED, WEEK OF 20-JAN.-2020) | CALIFORNIA-AMERICAN WATER COMPANYTo file I-Comp PD for Comments: Application of California-American Water Company (U210W) for Approval of the Monterey Peninsula Water Supply Project and Authorization to Recover All Present and Future Costs in Rates.http://docs.cpuc.ca.gov/SearchRes.aspx?DocFormat=All&DocID=325544871

A1312012, I1406016 | 27-JAN.-20 | ALJ/ALLEN/CPUCProposed Decision denying Pacific Gas and Electric Company’s Peti-tion for Modification of Ordering Paragraph 3 of Decision 16-12-010.http://docs.cpuc.ca.gov/SearchRes.aspx?DocFormat=All&DocID=325526378

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About this publicationThis monthly newsletter is to keep you informed of propos-als by the CPUC’s Commissioners and Administrative Law Judges, as well as utility applications, and other issues and work of note. We also include a list summarizing the filings at the CPUC in the previous month.

We want to hear from you! If you have topics you’d like us to cover or if you’d like to make comment on our proceedings or work, please contact us at [email protected] or call (855) 421-0400. You can find information about events we are having at www.cpuc.ca.gov/Events.

Prior editions of this newsletter are available on the CPUC’s website at www.cpuc.ca.gov/newsletter.

A1812013 | 27-JAN.-20 | ALJ/ZHANG/CPUCDecision Assessing a Penalty of $7,500 on BCM One, Inc., BCM One Group Holdings, Inc., and Thompson Street Capital Partners V, L.P. http://docs.cpuc.ca.gov/SearchRes.aspx?DocFormat=All&DocID=325542102

A1909008 | 27-JAN.-20 | ALJ/TRAN/CPUCDecision Granting Exemptions from Public Utilities Code Sections 816-830 and 851 Relating to Securities Transactions.http://docs.cpuc.ca.gov/SearchRes.aspx?DocFormat=All&DocID=325544880

A0712026 | 20-DEC.-2007 (REOPENED, WEEK OF 27-JAN.-2020) | CALAVERAS TELEPHONE COMPANY (U1004C) Joint Application for Rehearing of Decision 19-12-041: Application of Calaveras Telephone Company (U1004C), Cal-Ore Telephone Co. (U1006C), Ducor Telephone Company (U1007C), Happy Valley Tele-phone Company (U1010C), Hornitos Telephone Company (U1011C), Kerman Telephone Co. (U1012C), The Ponderosa Telephone Co. (U1014C), Sierra Telephone Company, Inc. (U1016C), The Siskiy-ou Telephone Company (U1017C), Volcano Telephone Company (U1019C), and Winterhaven Telephone Company (U1021C) for Rate-making Determination regarding Dissolution of Rural Telephone Ban.http://docs.cpuc.ca.gov/SearchRes.aspx?DocFormat=All&DocID=325636759

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California Public Utilities Commission

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